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New minimum wage to be announced next year

PUTRAJAYA – A new minimum wage for Peninsular Malaysia, Sabah, Sarawak and Labuan will be announced next year, said Human Resources Minister Datuk Seri Dr Richard Riot Jaem.

“The move will close the minimum wage gap for the private sector whereby it is currently RM1,000 in the Peninsular of Malaysia and RM920 for Sabah, Sarawak and Labuan,” he said.

Riot said the National Wages Consultative Council (MGPN) had started making plans to review the Minimum Wages Order 2016 to allow the government to determine the new minimum wages rate in line with the country’s current socio-economic development.

“We know that the minimum wages order must be reviewed at least once in two years. The review will look into the ability of the employers to pay the minimum wage which is a challenging responsibility to ensure that the minimum wage policy meets all objectives.

“The setting up of a group of wage and minimum wages researchers will have positive effect and allow the government to provide adequate social protection to employees throughout the country.

“The enforcement of the minimum wages is important as it will benefit the employees especially those with low income under the B40 category,” he said.

Riot was speaking in a press conference held after presenting the appointment letters to 25 members of the National Wages Consultative Council who were appointed for the period October 1 to September 30, 2020 to ensure the continuity of implementation for the minimum wages policy.

He said closing the minimum wages gap between employees in Peninsular Malaysia and in Sabah, Sarawak and Labuan was gradually being realised with the appointment of two members of the MGPN from the Sarawak and Sabah State Secretary’s offices.

“The review will take into consideration the cost of living as well as the operational costs which need to be borne by the employer who manages to close the gap in income in Malaysia.

“Previously, the minimum salary in Peninsular Malaysia was RM900 while in Sabah, Sarawak and Labuan, it was RM800.  In 2016, we closed the gap to RM1,000 (Peninsular) and RM920 ( Sabah, Sarawak and Labuan).

“Soon, the salary in both East and West Malaysia will be on par. This is still being studied by the Minimum Wages Technical Committee and the MGPN before it is tabled in the Cabinet,” he said.

Riot said as of June, 98 percent of employers in 142,151 statutory checks being carried out by the Labour Department had complied with the Minimum Wages Order. -MalaysiaGazette

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